photo credit: zharth via photopin cc

photo credit: zharth via photopin cc

The various iterations of fair franchising legislation pending in several legislatures in the United States could be considered quite mild when compared to legislation on the books just north of the border in Canada and how the courts have ruled in some cases.  Here is an article that lays out some of the extreme steps that may be required under Ontario’s law and references a specific hard-hitting decision by the Canadian Court of Appeal for Ontario. The article concludes with an interesting assessment: “The legislation is indeed remedial in nature.  It came into force as a result of an enormous amount of abuse heaped on unwitting and vulnerable franchisees by unscrupulous franchisors.”  I think this decision would give pause to the franchisor community at large – and encouragement to those franchisors who want to keep the franchising industry strong and growing – to work with franchisee organizations to develop fair and well-balanced legislation that would not be too extreme or remedial in nature???